Nebraska businesses upbeat, consumers cautious about state economy

The University of Nebraska-Lincoln Bureau of Business Research monthly survey discloses a split assessment of the state economy.

Bureau Director Eric Thompson says consumer confidence slipped in the latest survey, while business remains bullish on the state economy.

Nebraska’s Consumer Confidence Index fell slightly in May, down modestly from April. Business expectations remain upbeat, with 34% of the businesses responding last month expecting sales growth over the next six months. Only 14% report they expect sales to slide.

Businesses also expect to add workers.

Thompson suggests it might not be as hard to understand the split as it appears.

“I think it suggests that consumers are cautious, given the poor income growth, really over the past 15 years, and obviously the still-lingering effects from the great recession. But, even with these reluctant consumers, businesses seem to be making plans to move ahead,” Thompson tells Nebraska Radio Network affiliate KLIN.

Nebraska’s Consumer Confidence Index fell to 89.3 in May, down modestly from an April value of 92.2, according to the bureau. Both values are well below the neutral baseline value of 100. The Consumer Confidence Index-Nebraska is estimated based on responses to the Survey of Nebraska Households.

In contrast, business owners and managers expect has expressed optimism about sales and job growth for three straight months.

Surveys go out each month to 500 randomly selected Nebraska businesses and households. In May, 143 businesses responded. There were 136 respondents to the Survey of Nebraska Households.

The full survey report is available by clicking here for the Bureau of Business Research website.